Experts predict that the cost of a traditional Christmas dinner will remain stable this year, despite the recent increase in food prices. Market research conducted by Worldpanel by Numerator reveals that the average cost for a turkey and accompanying ingredients for a family of four will be around £32.46, slightly lower than last year’s £32.57. This price stability is noteworthy as grocery inflation stands at 4.7% compared to last month.
Retailers are actively engaging in promotions to attract Christmas shoppers, recognizing the significance of competitive pricing during the holiday season. Worldpanel data indicates that the price of a frozen turkey has decreased by 3.6% to £13.52, while parsnips are also cheaper at 71p for four. Conversely, the prices of cauliflower, carrots, Brussels sprouts, potatoes, gravy granules, stuffing mix, cranberry sauce, Christmas pudding, and sparkling wine have witnessed varying degrees of inflation.
Discount supermarket Aldi has maintained affordable prices, offering a festive meal for eight under £12, equating to less than £1.50 per person. Worldpanel notes a slight increase in promotional activities at supermarkets, with over 31% of purchases being on promotion last month.
Fraser McKevitt, Head of Retail and Consumer Insight at Worldpanel, emphasizes retailers’ efforts to accommodate budget-conscious shoppers amid ongoing financial challenges. He highlights the consumer trend of indulging in small treats despite economic pressures, evident in the popularity of premium own-label products.
While chocolate prices have surged, consumer demand remains strong, with millions purchasing confectionery advent calendars. Additionally, a notable percentage of shoppers have invested in Champagne or sparkling wine in recent months.
Online grocer Ocado has experienced significant growth, achieving a record market share of 2.2% with a sales increase of 15.8% in the past quarter. However, physical stores continue to dominate the grocery sector, with high expectations for increased footfall on the days leading up to Christmas.
Lidl has made substantial market share gains, while Aldi and Sainsbury’s have seen sales growth. Conversely, Asda faces challenges with declining sales. Tesco retains its leading position in the industry, with sales exceeding £10.2 billion and a market share of 28.3% in the three months ending in November.
